Kraton Corporation Announces Intent to Initiate Euro-denominated Term Loan and reprice Existing Term Loan

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Jul 27, 2017, 06:45 ET

HOUSTON, July 27, 2017 /PRNewswire/ -- Kraton Corporation (NYSE: KRA) (the "Company") and certain of its wholly owned subsidiaries announced today that they intend to enter into a Fourth Amendment to the Credit and Guarantee Agreement (the "Amendment"), amending the Credit and Guarantee Agreement, dated as of January 6, 2016. Pursuant to the Amendment, a wholly-owned Dutch subsidiary of the Company intends to borrow a new tranche of term loans denominated in Euros in an aggregate principal amount equal to €220 million (the "Euro Tranche"). The Company plans to use the proceeds from the Euro Tranche borrowings to pay down a portion of the existing U.S. dollar denominated term loans (the "USD Tranche"). Simultaneously with the pay down of the USD Tranche, the Company intends to reprice the then-outstanding USD Tranche. As a result of the new Euro Tranche and the repricing of the USD Tranche (together, the "Financing"), the Company expects to generate savings in interest expense annually and eliminate certain financial covenants.

The Company anticipates holding lender meetings in London to discuss the Financing on July 31, 2017. J.P. Morgan, Deutsche Bank, Credit Suisse, and Bank of America Merrill Lynch are joint lead arrangers and joint bookrunners for the transaction.

FORWARD LOOKING STATEMENTS

Some of the statements in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release includes forward-looking statements that reflect our plans, beliefs, expectations, and current views with respect to, among other things, future events and financial performance. Forward-looking statements are characterized by the use of words such as "expects," "intends," "plans," or "anticipates".

All forward-looking statements in this press release, including statements regarding timing, completion, structure and results of the Financing, are made based on management's current expectations and estimates, which involve known and unknown risks, uncertainties, and other important factors that could cause actual results to differ materially from those expressed in forward-looking statements. These risks and uncertainties are more fully described in our latest Annual Report on Form 10-K, including but not limited to "Part I, Item 1A. Risk Factors" and "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" therein, and in our other filings with the Securities and Exchange Commission, and include, but are not limited to, risks related to: Kraton's expected timing and success of the Financing; Kraton's financing plans and use of proceeds of the Euro Tranche borrowings; the integration of Arizona Chemical (now, AZ Chem Holdings LP); Kraton's ability to repay its indebtedness and risks associated with incurring additional indebtedness; Kraton's reliance on third parties for the provision of significant operating and other services; conditions in, and risks associated with operating in, the global economy and capital markets; fluctuations in raw material costs; limitations in the availability of raw materials; competition in Kraton's end-use markets; and other factors of which we are currently unaware or deem immaterial. Readers are cautioned not to place undue reliance on our forward-looking statements. Forward-looking statements speak only as of the date they are made, and we assume no obligation to update such information in light of new information or future events.

For Further Information:
H. Gene Shiels 281-504-4886

SOURCE Kraton Corporation